How to help cut your business expenses
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Are you worried cost-cutting means compromising your business vision? That’s only natural. But being vigilant with your expenses can be beneficial even when business is good.
You can be just as creative when it comes to saving as you can with a new seasonal marketing campaign. Here are some tips to help you keep costs down.
The first question to ask is: do you really need your own business premises? If so, maybe there’s a cheaper, more convenient part of town? Alternatively, your landlord may be willing to negotiate your rent.
However, if all you need is an internet connection and a reliable source of coffee, a serviced office may be overkill. A shared workspace or friendly cafe may do instead.
You could even work from home or ‘go mobile’, taking your business directly to your customers. These measures could save a bundle on office rent, insurance and utilities.
Just make sure you comply with the relevant regulations for your industry. And don’t forget to check with your family if you’re going to set up shop in your kitchen.
Before you reach for your company credit card, stop and think if there’s anything you could offer in return. After all, bartering was a thing way before cash became king.
For example, if you’re a photographer in need of new flooring for your studio, you could offer some striking promo shots in exchange for some sharp parquetry.
Perhaps your staff are getting sore shoulders after being hunched over accounting spreadsheets all day? There could be a local physiotherapist whose books desperately need straightening.
Trading goods and services could help save you vital cash and is a good way to help you build relationships with other local businesses. And who knows – it may give rise to new opportunities in the future.
Just keep in mind that when offering skill-for-skill work, it’s important to pre-establish ground rules and stick to your word. You should also log your exchange like any other business transaction.
Whether it’s rent, your energy bills or your paper supplies, never be afraid to ask for a better rate. Even a few cents shaved off wholesale supplies will add up to a much healthier looking bottom line.
Just like when renewing your car insurance, keep your eyes open for better deals. Check for discounts and better offers from other suppliers. You can then go back to your existing supplier, point out the difference and either come away with a better deal or go elsewhere.
Also, paying your bills on time can help you save on late-payment fees and put you in a better negotiating position when the time comes to renew your contract.
Replacing big, one-off IT expenses with far more manageable cloud-based subscriptions is another way to keep your expenses at bay. This way, you’ll always have the latest versions of your business software without having to pay for expensive upgrades.
Going cloud-based can also reduce the need to keep multiple hard drives hidden in safe spots, as the responsibility of keeping your business data safe lies with your cloud software provider. Just bear in mind that you may need to tighten up your cybersecurity if you do move your operations online.
There’s no single golden strategy for saving your business money, however, evaluating your spending habits may reveal unnecessary expenses that could be reinvested elsewhere to help grow your business.
This article is a general overview and should be used as a guide only. We recommend that you seek independent professional advice about your specific circumstances before acting.